The best UK postcodes for yields when investing less than £100,000

The best UK postcodes for yields when investing less than £100,000

0:02 AM, 30th August 2024, About 4 months ago 4

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Research has revealed the five UK postcodes where landlords can achieve the highest rental yields with an initial investment of less than £100,000.

The findings from Inventory Base show that the national average rental yield stands at 4.3%.

That’s based on an average house price of £333,030 with a monthly rental income of £1,206.

But several postcodes offer significantly higher returns for investors seeking to maximise their income without breaking the bank.

Landlords don’t need to invest huge amounts

The firm’s chief executive, Steve Rad, said: “Buy to let landlords don’t need to invest huge amounts of money to benefit from a strong rate of return and in some areas, you can invest in three properties for the price of the average UK home and build an instant portfolio with very strong yields.

“But it’s essential to remember that regardless of how much you invest, or where, your responsibilities as a landlord remain the same.”

He adds: “Cutting corners operationally in order to maximise returns is a sure-fire way to lose money in the long run and so it’s important to carry out every aspect to the same professional level, whether that be property management, securing a tenant’s deposit, or conducting inspections and inventory checks.”

Top five hotspots for yield

Topping the list of Inventory Base’s top five hotspots is Bradford’s BD1 postcode, where landlords can expect an impressive average rental yield of 13.1%.

With an average house price of just £63,988, the average monthly rent in BD1 is £697, making it the most lucrative opportunity for buy to let investors.

The postcode also ranks as having the highest yield across all UK postcodes – regardless of the property’s initial investment price.

Other postcodes with high yields include Leeds’ LS3 (12%), Sunderland’s SR1 (11%), Aberdeen’s AB24 (9.2%) and Middlesbrough’s TS3 (8.6%).


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Cider Drinker

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8:32 AM, 30th August 2024, About 4 months ago

Yields are an interesting indicator but it’s only net profit that really matters.

With higher yields come higher risks. Four out of five of those postcodes are in places I wouldn't choose live and certainly wouldn’t want to own rental properties.

roger radford

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10:38 AM, 30th August 2024, About 4 months ago

Redbridge and Barking have higher rental yields than other more salubrious areas of London. Go figure.

John Grefe

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11:34 AM, 30th August 2024, About 4 months ago

Reply to the comment left by Cider Drinker at 30/08/2024 - 08:32
I agree. Difficult places to operate

Jonathan Clarke

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17:33 PM, 1st September 2024, About 4 months ago

Reply to the comment left by Cider Drinker at 30/08/2024 - 08:32
`With higher yields come higher risks`

I dont see it that way . Risk is subjective. I invest in some estates that others wont . They think its too risky. I say but i am getting much better ROI . I say to them what exactly do you mean when you say its risky

I don't like to fly as i see it as risky but i love to drive my car . But I`ve got far far more chance of dying in a car crash than a plane crash . But subjectively i don't see it that way even though i know i am wrong . I am blind to it

Risk is subjective . But in my view it can lose you a lot of potential wealth in property if a LL cannot break that blanket perception that higher yields means higher risk

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